It is estimated that there are 2.75 million students studying in the UK and the number is growing every year. With more students studying at university than during the last decade, the benefits of being a student landlord has never been higher. However, being a landlord for students at university could be considered a risky business. While it’s not with no risks however, it can be extremely profitable, and it’s a fantastic chance to increase your portfolio of investments.
The landlord must meet certain requirements when renting to students
One of the primary reason landlords can be cautious when they consider students for tenants is the image associated with the student life. They may be new to living in a home or lacking experience , or just beginning acquainted with their alcohol limitations. This lifestyle may cause use and wear on the home and more work to be done towards the end of the lease.
However, not all students are alike. Even those in the process of learning can be considerate of the area in which they live in. A landlord’s relationship with a a student tenant is also governed by the law and contract rules to safeguard both parties. We’ll look at the various requirements.
Choosing whether to utilize an agency for letting to manage students as tenants
The most frequent decision landlords must make is whether or not they would prefer to lease directly to tenants or rely on a third-party letting agent who manages the home on their behalf. Each choice has pros and cons, with consequences for both the time frame and financials. When renting out an apartment for students there are additional issues you must know about (such as health and safety regulations, etc. ) A let agent might be able to help and assist you with.
For instance, did you have any idea it was the case that House of Multiple Occupancy (HMO) regulations changed in the year 2018? The new regulations require that any property that has five or more tenants coming from two separate households is deemed an HMO. These types of situations require careful analysis to ensure that you’re always in compliance with laws, providing an environment that is safe for students and fulfilling your responsibility to care as a landlord.
Legal requirements before allowing students
* Obtaining a lease license
If your home is located in an area with a restricted licensing, or you plan to rent to multiple tenants You’ll require a landlord license or HMO license.
* Get official permission for the use of the house
You’ll need permission from your superior landlord, mortgage company, insurance company or lender.
* Consider data implications
If you’re renting out privately and you’ll be keeping, processing or storing personal information, you’ll have to sign up to the Information Commissioner’s Office (ICO). If you’re working with an agent to let your property You’ll have to talk with them about their procedures and the person who is responsible with.
* Be aware of charges for tenants
The Tenant Fees Act 2019 prevents tenants having to pay fees for referencing, drawing up contracts/inventories, carrying out credit checks or other tasks in relation to administration.
* Get student verification
It is important to ensure the tenants’ status as full-time college students attending an educational institution.
* Check your immigration status
If you’re renting within England and Wales, you’ll have to run a ‘right-to rent’ test for your prospective tenants their immigration status.
The legal requirements are met at the time of letting students
Similar to the previous example it is not uncommon to have a variety of items you’ll need perform, or provide your students with at the beginning of their tenure. They could include, but not be limited to:
Documentation that is relevant, such as the Energy Performance Certificate (EPC) with an E rating minimum of’ (before the agreement is signed) or the valid Gas Safety Certificate (the day they move into) and a student-focused lease agreement that defines the obligations and rights of both the tenant and landlord as well as a copy the guide of the government”How to rent”.
* Information about the scheme of tenancy deposit that is approved by the government you’ve selected to store your money into (within thirty days from receiving your deposit).
* Information on the use of safety equipment inside the premises.
Copy of most current Electrical Installation Condition Report (EICR) in the event that the property is located in England.
Legal requirements for the student’s property conditions
As a landlord for students there are legal requirements that you have to meet regarding the conditions of your tenant’s home. This includes ensuring:
This property suitable to be used by humans.
Each electrical device is in good functioning order, best if they are “PAT tested”.
* All plugs, sockets etc. conform to that of the UK standard.
* Current requirements for fire safety and resistance are met for furniture and upholstery you offer
* There aren’t any obstructions to the fire escape routes, and the property manager as well as students know about evacuation procedures.
* The measures are put in place to reduce the risk of fire.
The rental home must be in England rooms that contain combustion appliances must be equipped by a carbon monoxide monitoring device.
* There must be one smoke detector (minimum) for each floor of a home that is used to live in. They should be checked at the beginning of the lease and a report made.
Legal requirements when letting students
When you are letting students out it is important to:
* Inform your council to inform them that there are student tenants living in your house.
• Consider the hygiene of your water and make sure you check for legionella.
* Repair any property damage that is necessary for damages to the structure or water supply electric, gas, etc.
Make sure that you’re following the terms of the tenancy agreement.
Make sure that your home is in compliance with the law when it is classified in the category of an HMO.
Get in touch with the experts at gshomes.co.uk for more information on student property management.
The things to be included in the student tenancy agreement
Student tenancy agreements can be one of the most crucial documents that you’ll need to prepare when you rent your property to students. It provides both the landlord’s as well as the students’ essential rights, as well as any agreements that might be made with regard to the lease to students of your property. Here are some important things to include in your student tenancy agreement
Important details include that of tenant and landlord and the date when the tenancy began as well as the address of the property.
Information on the extent to which all tenants are accountable for the total rent (this is known as being ‘jointly and jointly responsible’), so that in the event that one tenant fails to pay the rent, all tenants are accountable. This must be clearly stated in the contract and it’s a good option to convey it to tenants directly.
* Specific information about the length of tenancy, the cost rent, methods of payment, and the time when rent will be examined.
• Information about charges, for instance, whether they’re included in rent, who’s responsible for them, etc. While it’s usually the responsibility of the tenant however, it’s not uncommon to see HMO as well as student landlords to provide all-inclusive leases (rent and charges are part of the monthly installment).
* Deposit details , including the amount due and situations that may result in deductions (for instance, unpaid rent and property damage, etc. ).
* A comprehensive summary of landlord’s and tenant’s obligations.
* Additional information about the guarantors (if appropriate).
* Information about the tenant’s notice period, as well as any break clauses , if relevant.
* Specific information on the early end of a tenancy including reasons for the termination.
* Confirm that tenants are allowed to have pets. If they are, then you might want to you should think about adding a pet policy.
* Confirmation that you consent to subletting.
Student property management
After the important aspects are out of the way and your tenants have relocated and settled in, you’ll have to concentrate on the ongoing managing your student rental property. The way you manage your property will differ depending on how you handle the rental yourself or work with an agent to manage the property However, here are a few guidelines to help you find your own unique way to manage a rental property for students.
Student renting – Tips
Communication is the key
It is essential to set your rules in the student tenancy agreement. it’s a good base for a solid landlord-tenant relationship. Once you have this completed and your tenants moving in, you might be able to contact them on a regular basis and give them the chance to inform you of what’s going on and if they have any issues that must be addressed. Some landlords assign an ‘lead tenant’ that is a representative for their property. This is beneficial as it avoids the need for multiple conversations and makes it simpler to schedule trips to visit the premises.
Be aware that this could be a lot of students’ first time renting a property.
Since a lot of students will not have previously rented a home – or moved out of their home – be aware of this when you talk to students. The government’s “How to rent guide’ is an excellent source, however government documents is often formal and intimidating. You may want to think about creating your own student-friendly checklist of things to be prepared for like an outline of the different security checks that should be conducted and be sure to provide the background of any visit on the premises.
* Never underestimate the value of a great group of students
As we said earlier that the experience of a student landlord may differ according to the type of students you’ve got. If you have an excellent group of tenants It is beneficial to keep them.
The typical student degree takes about three to four years to complete, with a lot of students opting to pursue postgraduate education. If you’ve found excellent student tenants who maintain your home in good condition and make their rent payments on time ensure that you keep them in your possession!
In addition to being secure knowing the tenants you employ are trustworthy and trustworthy, renewing a student’s contract also decreases the chance of having a costly period of vacant. Certain students would prefer to remain in their college town during the summer, therefore permitting them to stay in the house (or sublet, should they choose to move back to home) in this period of time can be a great incentive to sign a new tenancy agreements.
Be aware the fact that communities of students are a tight knit and in some universities, housing options are very limited. In the event that your renters have had great experience, they’re likely refer them to fellow students. That means you could be able find the next year’s tenants without needing to market!
Be sure to have insurance
It’s vital that landlords have an understanding grasp of the rights of a student tenant It’s equally essential to ensure that you are protected as well as your property. Insurance for landlords who are students is crucial to offer protection that home insurance policies do not provide. This kind of insurance for landlords covers a variety of elements including the loss of rent as well as extended non-occupation.
